Social Security earnings limit at 65 - how much can I work without benefits reduction?
I started collecting Social Security last year at 64 and I'm turning 65 in a few months. I just got offered a part-time position at my old company that would really help with expenses (inflation is killing me!). My full retirement age is 67 according to my SS statement. I know there's some earnings limit before they start reducing my benefits, but I can't figure out exactly how much I can earn. Is it $20,000? $25,000? And do they count my wife's income against this limit too?? Also, does it matter that I'll be turning 65 mid-year? The SSA website is so confusing and I've been on hold for nearly 2 hours trying to talk to someone.
14 comments
Join the conversation
Kristian Bishop
For 2025, if you're under full retirement age for the entire year, you can earn up to $24,960 without any benefit reduction. Since your FRA is 67 and you're 65, this applies to you. After that limit, they reduce $1 in benefits for every $2 you earn above the limit. This only applies to YOUR work income, not your wife's income or any investment/pension income. If you'll reach FRA during 2025 (which you won't based on what you said), the limit would be higher - about $66,240 for the months before you reach FRA.
0 coins
Eva St. Cyr
•Thank you so much! That's really helpful. So if I earn $30,000 this year, they would reduce my annual benefit by $2,520 (half of the $5,040 I earned over the limit)? Does this reduction happen automatically or do I need to report my earnings somewhere?
0 coins
Kaitlyn Otto
i went thru this last yr. they take the money back the next yr if u go over. make sure u let them know ur working or youll get a HUGE bill later!! happened to my brother & now hes paying back like $7000!
0 coins
Eva St. Cyr
•Oh no! That's exactly what I'm worried about. How do I report that I'm working? Do I call the SS office or is there a form online somewhere?
0 coins
Axel Far
The SSA is TERRIBLE about explaining the earnings limit!! I got hit with a $4,500 overpayment notice last year because I didn't understand this. Here's what you need to know: 1) Call and tell them your EXPECTED earnings for the year ASAP 2) They can adjust your benefits now instead of creating an overpayment 3) They do eventually find out through tax records but that's WAY later 4) They'll send you a form called an SSA-131 to estimate your earnings GOOD LUCK getting through to them though! I spent DAYS trying to reach someone.
0 coins
Jasmine Hernandez
•I had the same problem trying to reach SSA last month! After being on hold for hours and getting disconnected twice, I finally used a service called Claimyr (claimyr.com) that got me through to a rep in under 30 minutes. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Was totally worth it to finally talk to someone and get my earnings limit questions answered.
0 coins
Luis Johnson
Are you SURE your full retirement age is 67? I'm 65 too and mine is 66 and 4 months. I think it depends on what year you were born.
0 coins
Kristian Bishop
•You're right about FRA varying by birth year. For those born in 1960 or later, FRA is 67. For those born in 1959, it's 66 and 10 months. For 1958, it's 66 and 8 months. The OP should double-check their exact FRA on their Social Security statement or at ssa.gov.
0 coins
Ellie Kim
Just wanted to add that once you reach your full retirement age, there is NO limit on how much you can earn. The earnings limit only applies before you reach your full retirement age. Also, if they withhold some of your benefits due to earning over the limit, you'll get those benefits back gradually after you reach full retirement age in the form of a slightly higher monthly payment. So it's not completely lost money!
0 coins
Fiona Sand
•This is a really important point that many people miss! The adjustment after FRA is called the Adjustment to Reduction Factor (ARF). Basically, SSA recalculates your benefit to credit you for months you didn't receive a benefit due to the earnings test. It can make a noticeable difference in your monthly amount after you reach FRA.
0 coins
Kaitlyn Otto
do they count vacation pay in the earnings limit? i might get paid out for unused vacation when i leave my job
0 coins
Fiona Sand
•Yes, vacation payouts count toward the earnings limit in the year you receive them. Any wages or self-employment income that's subject to Social Security and Medicare taxes generally counts toward the limit. This includes bonuses, commissions, vacation payouts, and even some deferred compensation.
0 coins
Eva St. Cyr
Thanks everyone for all this information! Just to make sure I understand correctly - I need to inform SSA about my expected earnings for this year, and I can earn up to $24,960 without reduction. If I earn more, they'll reduce my benefit by $1 for every $2 over. This only applies to work income, not my wife's income or any investment income. And once I reach 67 (my FRA), there's no earnings limit at all.
0 coins
Kristian Bishop
•You've got it exactly right! Just make sure to report your estimated earnings to SSA as soon as possible to avoid potential overpayment issues later. And remember that your benefits aren't permanently reduced - you'll get credit for those reductions once you reach your FRA.
0 coins